Prince says he considered starting a new company in the crypto space, but wants something with a regular work week and lacks the octane and volatility of the industry.
BlockFi Settles With FTX, Alameda Estates for $874.5M
The settlement with FTX and Alameda Research is a key part of BlockFi’s bankruptcy and reorganization plan.
FTX Can Start Mediation, File Counterclaims in BlockFi Bankruptcy Case, Judge Rules
BlockFi filed for bankruptcy in late November last year, in part because of the ripple effects of the sudden collapse of FTX, which triggered an automatic stay that halted proceedings between the two.
Luxor refutes claims its Bitcoin hashrate-backed product is BlockFi, Celsius 2.0
“The return comes from hashrate, not from pixie dust, ponzi schemes, or rehypothecation,” a Luxor Technology executive stressed.
BlockFi emerges from bankruptcy and opens wallet withdrawals
BlockFi announced that it is allowing both U.S. and international users to submit withdrawal requests.
BlockFi CEO’s Key Testimony: Insights Into Alameda’s Financial Stability In FTX Trial
The trial against FTX co-founder Sam Bankman-Fried took an intriguing turn as Zac Prince, the CEO of defunct crypto lender BlockFi, provided testimony in a Manhattan federal courtroom.
Prince’s appearance provided valuable insights into the intricate relationship between BlockFi, FTX, and Alameda Research.
BlockFi’s Bankruptcy Rooted In Alameda And FTX
According to a Bloomberg report, Prince revealed that BlockFi had substantial exposure to Alameda and FTX, estimated at around $1 billion, at the time of BlockFi’s failure in November 2022.
Prince asserted that if the loans to Alameda were still in good standing and the funds on FTX were available, BlockFi would not have filed for bankruptcy. This statement suggests that BlockFi’s financial troubles were closely tied to the collapse of Alameda and FTX.
Prince’s testimony diverged significantly from Caroline Ellison, the government’s star witness, who portrayed Bankman-Fried as the mastermind behind a fraudulent scheme using FTX customer funds for speculative trading at Alameda.
Prince’s account positioned BlockFi as a victim of Bankman-Fried’s alleged schemes, claiming that BlockFi made loans to Alameda based on misleading balance sheets.
Defense lawyers sought to emphasize that BlockFi willingly provided the loans to Alameda, with knowledge of the associated risks.
Creditors Accuse BlockFi Of Inadequate Due Diligence
Prince discussed BlockFi’s due diligence process regarding Alameda’s collateral, comprised of tokens affiliated with FTX. The judge requested plainer terms during Prince’s explanation, prompting an analogy using car loans.
Per the report, the prosecution questioned the adequacy of BlockFi’s due diligence, as creditors accused the company of failing to recognize warning signs before offering substantial loans to Alameda.
Prince’s testimony highlighted that providing “unaudited balance sheets” is an industry norm for borrowers seeking loans. The defense sought to establish that BlockFi knew the risks of lending to Alameda and acted within industry norms.
Zac Prince’s testimony in the trial against Sam Bankman-Fried provided a deeper understanding of the intertwined relationships within the crypto industry. BlockFi’s exposure to Alameda and FTX and its subsequent bankruptcy offered insights into the potential repercussions of alleged fraudulent activities.
The differing narratives presented by the prosecution and defense underscore the complexities of the case. As the trial unfolds, the court will continue to examine the details surrounding BlockFi’s lending practices and the extent of Bankman-Fried’s involvement in the alleged schemes.
It is important to note that BlockFi can no longer be utilized for crypto-related activities, as the company declared bankruptcy and suspended withdrawals in November 2022. The bankruptcy filing indicates that BlockFi owes between $1 billion and $10 billion to over 100,000 creditors.
Featured image from NBC, chart from TradingView.com
BlockFi Bankruptcy Judge Says He Wants 3AC’s $284M Claim Resolved in Mediation
Failed crypto hedge fund Three Arrows Capital’s (3AC) attempt to pursue a $284 million claim against crypto lender BlockFi was put into mediation by the U.S. bankruptcy judge overseeing BlockFi’s case.
BlockFi Says It’s Taken Major Step Toward Emerging From Bankruptcy
Crypto lender BlockFi gets court nod to repay customers
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FTX, BlockFi’s Customer Data Compromised in Kroll Hack
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BlockFi argues FTX, Three Arrows Capital isn’t entitled to repayments
BlockFi argues its creditors, not FTX’s, are the “ultimate victims” of FTX’s alleged fraud.
BlockFi opens crypto withdrawals for eligible US users following court order
The lending platform halted client withdrawals amid filing for bankruptcy in November 2022, but later petitioned the court for authorization to return user funds.
Bitmain, Anchorage Expected to Take Equity in Bitcoin Miner Core Scientific as Part of Bankruptcy Plan
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Bankrupt Crypto Lender BlockFi Inches Closer to Refunding Clients
A disclosure statement is an official, court-approved document outlining the debtor’s assets and liabilities.
BlockFi Bet Big on FTX and Alameda Even After Seeing Infamous Balance Sheet, Creditors Say
The crypto lender saw “the exact same balance sheet” later published by CoinDesk but still put clients’ money in Sam Bankman-Fried’s companies, a scathing new report claims.
BlockFi CEO ignored risks from FTX and Alameda exposure, contributing to collapse: court filing
Crypto lending firm BlockFi had roughly $1.2 billion in assets tied to FTX and Alameda Research when the firm filed for bankruptcy in November 2022.
Three Arrows Capital Liquidator May Try to Claw Back About $1.2B From DCG, BlockFi
A July 7 report from Teneo, the hedge fund’s liquidator, described the potential claims.
BlockFi Bankruptcy Plans Opposed by FTX, Three Arrows, and SEC
Multiple defunct crypto companies are now scrambling to resolve complex financial ties as they seek to repay creditors and customers
Maple Finance announces direct lending to fill the void left by BlockFi, Celsius
The lending platform’s team will begin offering loans directly to some borrowers instead of relying solely on pool delegates to provide capital.
‘End the Extortion:’ BlockFi Creditors File to Liquidate Estate
Creditors accuse CEO Zac Prince of defrauding customers and the company of “mischief” in delaying a wind-up.
